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Danone has published a statement affirming the company’s continued sourcing of soy from Brazil, after it was reported to have cut out Brazilian soy ahead of the EU Deforestation Regulation (EUDR).

Last week, Reuters reported that Danone’s deputy CEO and CFO, Jurgen Esser, had said the company no longer sources from Brazil, saying Danone was now “absolutely” importing soy from Asia – though details on from which Asian countries, and when the move was put into place, were unclear.

The Brazilian government’s Ministry of Agriculture and Livestock issued its own statement in response, emphasising its “rigorous environmental legal framework,” commitment to transparency and its position on the upcoming EUDR framework, which it described as “arbitrary, unilateral and punitive” as it “fails to consider the particularities of the producer countries”.

The EUDR is a legislative measure designed to ensure that key raw commodities sold in the EU, including soy, cocoa, coffee and palm oil, do not contribute to deforestation or forest degradation.

Once implemented, companies will need to provide due diligence statements proving their compliance with the regulation. This will include robust tracking systems and penalties for non-compliance.

The regulation was due to take effect by the end of 2024, but the European Commission has announced a 12-month extension for its implementation, which will now see companies required to comply by 30 December 2025.

🌳 Read more about the implications of the EUDR, and the 12-month delay of its implementation, in Siân Yates' piece for FoodBev here. 🌳

In its statement, Brazil’s Ministry of Agriculture and Livestock said: “We reiterate that Brazil’s position is firm about not accepting regulations that ignore our environmental and social advancements through the imposition of disproportional restrictions on Brazilian products”.

“Brazil is ready to collaborate but demands to be treated with the same fairness and balance that guide international trade relations. Unreasonable and inappropriate measures – such as the ones announced by European companies with strong presence and activity in the Brazilian market – must be rejected.”

The government affirmed that its “rigorous” framework, supported by “an efficient command and control system backed by a complex monitoring and inspection structure” has enabled the country to “combat illegal deforestation with public policies that encompass the Cerrado, the Amazon, and other sensitive regions”. 

“Brazilian agriculture is a pillar of global sustainability and already reached high standards that reflect our commitment to fair and sustainably responsible trade,” the statement continued. “Brazil's agricultural and livestock metrics have been assessed in international forums concerning sustainability; compared to other countries, they show a positive distinction in terms of productivity gains and the reduction of negative impacts.”

Yesterday (31 October 2024), Danone took to LinkedIn to share its own statement confirming that Danone “continues to purchase Brazilian soy, in compliance with local and international regulations”.

The statement from Silvia Dávila, member of the global executive committee and regional president for Latin America at Danone, reads: “We regret the incorrect information circulating about Danone and the sourcing of Brazilian soy”.

“We wholeheartedly recognise the Brazilian government’s solid commitment to preserving local forests and their remarkable programs dedicated to protecting the rainforest and advancing sustainable soy agriculture. We also acknowledge class associations and Brazilian farmers who have been tirelessly dedicated to sustainability and innovation in the field.”

Danone said that Brazilian soy is “an important input in the company’s feed supply chain for dairy farmers in Brazil and continues to be used,” with most of this “made accessible to dairy farmers through Danone’s Central Purchasing, including processes that secure its origin from non-deforested areas”.

Dávila added: “In other regions, like in EU, where dairy farmers obtain their feed directly from suppliers of their choice, Brazilian soy is an important input for the industry. Danone works actively with the dairy farmers to ensure that the soy is sourced from sustainable and verified deforestation-free sources, regardless of geographical origin. We also actively encourage the dairy farmers to purchase feed only from traders who respect their commitments or hold credible certifications.”

FoodBev has reached out to Danone for confirmation on the specifics of where Danone uses Brazilian soy and whether it is sourced indirectly from Brazil for animal feed only, rather than across its portfolio of soya milk and yogurt products.

#Danone #Brazil #EUDR #soy